Metro Mining : Successful Institutional Placement Raising $15.9 Million ahead of Fully Underwritten Entitlement Offer

ASX ANNOUNCEMENT

28 February 2017

Successful Institutional Placement Raising $15.9 Million ahead of Fully Underwritten

Entitlement Offer

Highlights

Institutional Placement bookbuild successfully completed raising approximately $15.9 million Heavily oversubscribed with a number of leading institutional resource investors attracted

Metro's largest shareholder Greenstone to participate in the Institutional Placement to maintain its 19.6% stake via its anti-dilution rights

Fully underwritten non-renounceable Entitlement Offer to raise approximately $36.5 million opens Wednesday, 8 March 2017

Post completion of the equity raising Metro will be fully funded to a decision to mine for the Bauxite Hills Mine which remains on-track for project construction to commence H2 2017

Metro Mining Limited (ASX:MMI)(Metro) is pleased to announce that it has successfully completed a bookbuild to raise approximately $15.9 million at an issue price of $0.125 per share (Institutional Placement).

The Institutional Placement was heavily oversubscribed and attracted a number of leading institutional investors. Metro's largest shareholder Greenstone also participated in the Institutional Placement to maintain its 19.6% stake via its anti-dilution rights.

The Institutional Placement in conjunction with the Metro's fully underwritten one for two entitlement offer (Entitlement Offer) will raise Metro approximately $52.4 million to maintain development momentum at its 100% owned Bauxite Hills Mine and to repay bridge loan facilities which supported the transformational acquisition of project neighbour Gulf late last year.

Argonaut was sole Lead Manager to the Institutional Placement and is Underwriter to the

$36.5 million Entitlement Offer.

ASX Announcement | 28 February 2017 | Page 1

Metro's Managing Director, Simon Finnis, said:

"We are delighted by the success of the Institutional Placement which attracted very strong support from leading institutional investors. We are also pleased Greenstone has chosen to participate to fullest extent possible to maintain its stake."

"We welcome the new high quality Institutional investors to Metro's register and look forward to their and our existing shareholders support as we continue to progress the exciting Bauxite Hills Mine toward production."

Entitlement Offer

The Entitlement Offer will open on Wednesday, 8 March 2017 and close on Friday, 17 March 2017.

Under the Entitlement Offer, eligible shareholders will be invited to subscribe for one new share for every two existing shares held at 7.00pm (Sydney time) on 3 March 2017, at the same Issue Price as the Institutional Placement.

Both Balanced Property and Greenstone have committed to subscribe their pro-rata share in the Entitlement Offer. In addition, Balanced Property has agreed to priority sub-underwrite the Entitlement Offer up to a 19.9% relevant interest in Metro post equity raising.

Entitlements are non-renounceable and will not be tradeable on ASX or otherwise transferable. Eligible shareholders who take up their entitlement will be able to trade in the shares from

27 March 2017. Eligible shareholders who do not take up their entitlement will not receive any value for those Entitlements.

The Entitlement Offer will include a top up facility under which eligible shareholders who take up their full entitlement will be invited to apply for additional shares in the Entitlement Offer from a pool of those not taken up by other eligible shareholders. There is no guarantee that applicants under this top up facility will receive all or any of the shares they apply for under the facility.

Eligible shareholders wishing to participate in the Entitlement Offer should carefully read the information booklet, which will be despatched on or around Wednesday, 8 March 2017, and follow the instructions set out on the personalised entitlement and acceptance form that will accompany the information booklet. A copy of the information booklet will be available on Metro Mining's website www.metromining.com.au and the ASX website www.asx.com.au today.

Further information

Should you have any queries in relation to the Entitlement Offer, please contact Metro's offer Information line on 1300 560 339 (within Australia) and [phone] (outside Australia) on weekdays between 9.00am and 5.00pm (Sydney time). Alternatively, contact your stockbroker, solicitor, accountant or other professional adviser.

Important information

This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States, or in any other jurisdiction in which such an offer would be illegal. The securities referred to in this document have not been and will not be registered under the United States Securities Act of 1933 (the 'US Securities Act'), or under the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly, within the United States, unless the securities have been registered under the US Securities Act or an exemption from the registration requirements of the US Securities Act is available.

This document may not be distributed or released in the United States.

This announcement contains certain 'forward-looking statements' within the meaning of the securities laws of applicable jurisdictions. Forward-looking statements can generally be identified by the use of forward-looking words such as 'may,' 'should,' 'expect,' 'anticipate,' 'estimate,' 'scheduled' or 'continue' or the negative version of them or comparable terminology. Any forecasts or other forward looking statements contained in this announcement are subject to known and unknown risks and uncertainties and may involve significant elements of subjective judgment and assumptions as to future events which may or may not be correct. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material. Metro does not give any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur and you are cautioned not to place undue reliance on forward-looking statements.